House Bill No. [insert number] proposes the establishment of an income tax credit for motor vehicle manufacturers and their suppliers in Louisiana. The bill enacts R.S. 47:6003, which allows qualifying taxpayers to claim a credit against their Louisiana income tax for any taxable year in which they place qualified manufacturing and productive equipment property into service. The credit amount is calculated based on the type of property, with varying percentages for different recovery periods, and is capped at $10 million per taxpayer per taxable year. Additionally, the bill outlines the definitions of "qualified manufacturing and productive equipment property" and "qualifying taxpayer," as well as stipulations regarding the carryforward of unused credits and recapture of credits in certain circumstances.

The proposed law also specifies that no taxpayer can receive any other state tax credit or preference for activities for which they receive this credit, and it prohibits the earning of credits for taxable years beginning after December 31, 2031. The provisions of this act will apply to taxable periods starting on or after January 1, 2026, and it will become effective on that same date. The bill aims to incentivize investment in the motor vehicle manufacturing sector within the state, thereby promoting economic growth and job creation.